Biomass Energy for Heating and Hot Water Supply

Project Summary

The goal of the project is to introduce the environmentally friendly option of biomass energy within the context of the current socio-economic system in Belarus. The intention of the project is not to liberalize the economy of Belarus, and therefore the project has concentrated on the willingness of the government to undertake behaviors that will support the rational use of energy. It will focus on the following objectives: 1) strengthening institutional capacity to support biomass energy projects; 2) establishing a track record for investments in sustainable biomass energy projects, including both fuel supply and demand; 3) developing straightforward financial “starter” mechanisms in a challenging investment climate that will allow continued financing for biomass energy projects; and 4) overcoming negative perceptions of biomass energy and provide public and private investors with much-needed market information. First, the project will address lack of biomass project experience by facilitating the investment of USD 2.1 million by the Committee on Energy Efficiency and USD 3.4 million by the private and public sectors by 2006 in biomass energy projects. The project will also address financial barriers by establishing a revolving fund with initial capitalization of USD 1.54 million that will be based in part on the GEF contribution and dedicated to the support of biomass energy.